Judge Rejects $250M Boy Scouts Settlement with Mormon Church
Judge Laurie Selber Silverstein said that the settlement wasn’t sufficient to give the church legal protection from abuse that might have occurred outside of scouting.
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The Boy Scouts of America withdrew a $250 million sex-abuse settlement with the Church of Jesus Christ of Latter-day Saints from the youth group’s chapter 11 plan after a bankruptcy judge rejected the proposed terms, reports the Wall Street Journal. The Mormon institution will now be treated as any other troop sponsors that didn’t opt out of the chapter 11 plan and also didn’t settle with the Boy Scouts. The church will get legal protection for claims that occurred after 1976 because it was insured under Boy Scouts policies in that period.
For one year after the youth group emerges from bankruptcy, the Mormon Church group can try to negotiate with a settlement trustee charged with overseeing victim compensation, but if no settlement is reached after a year, then abuse claims can be brought against the church. Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court in Wilmington, Del., declined to grant the institution the releases that would have shielded it from abuse claims beyond those related to the Boy Scouts, saying that the settlement wasn’t sufficient to give the church legal protection from abuse that might have occurred outside of scouting.
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